Time to Buy Vanguard VYM High Dividend ETF?

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The Vanguard High Dividend Yield ETF ( NYSE: VYM ) is an exchange-traded fund that tracks the FTSE High Dividend Yield Index. The index is comprised of U.S. stocks with above average dividend yields, giving investors a low cost way to basket the highest paying dividend stocks in one equity.

Passive income seekers or investors looking for more dividend exposure in their portfolio will find VYM attractive for its 2.70% dividend yield (paid quarterly) and its very low expense ratio of .06%. VYM is comprised of 537 stocks with above average dividend yields, making the ETF one of the most diversified ETFs you can find.

24/7 Wall St. Insights

• VYM provides a 2.70% dividend yield, offering long-term stability and broad sector diversification for passive income seekers.
• VYM focuses on high dividend yield and wide sector exposure, while SCHD prioritizes dividend growth and financial strength.
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VYM Dividend Yield History 2014- 2024

The Vanguard High Dividend Yield ETF average yield dropped over the last year due to the remarkable 1 year performance of the equity, gaining 28.02% in share price. As we will see below, a few of the largest positions in the fund had stellar years that drove the share price higher which dropped the distribution yield, even though the total distributions received was higher than the previous 12 months.

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